Why is Porsche such a successful company?

Answer 1

Several reasons.

First, they have a premium product and do not discount it. This allows them to make large profits despite having a relatively low margin in comparison to others.

Second, it has been (until the recent moves by VW) a closely held corporation with a specific vision and a brand, this has built brand identity and equity and allowed them to sell their cars for such high prices.

Third, they have a low overhead and have advanced to modern production techniques. While this diminished the "character" of the hand made air cooled cars, it allows great economy of scale, and thus, greater profits.

Finally, they have had excellent financial people manipulating the derivatives, options and stock markets. In 2008, their profit exceeded their sales - which should not make sense, but it happened because of the returns on their investments.

Answer 2

Horsepower and handling